Moody's turns ENN gas view to positive

Moody's Investors Service said it affirmed the Ba1 ratings on ENN Natural Gas Co., Ltd. and the senior unsecured notes issued by ENN Clean Energy International Investment Ltd. and guaranteed by ENN Natural Gas and revised their outlook to positive from stable.

"The change in outlook to positive reflects our expectation that ENN Natural Gas' financial metrics will strengthen above our rating tolerance over the next two years due to the strong operating performance of its non-utilities businesses which benefit from high energy prices, as well as improvement in its city gas operations as Covid lockdown measures gradually ease," said Boris Kan, a Moody's vice president and senior credit officer, in a press release.

Kan added, “We expect the regulated city gas and related businesses will continue to account for more than half of the company's total profits on a sustained basis despite the temporary increase in projected profit contributions from its non-utilities businesses over the next 12 to 18 months.”

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